Beyond Bitcoin: Why Advisors Can’t Afford To Ignore Ethereum
Why Ignoring Ethereum Means Missing the Next Phase of Digital Assets
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Beyond Bitcoin: Why Advisors Can’t Afford To Ignore Ethereum
Over the past few years, our conversations with financial professionals almost always began at the same place – Bitcoin. We’re comfortable starting here, and we’ve noticed everyone else is too. It’s a natural entry point for any skill-level professional and the safest topic to engage with, given that Bitcoin is the most established, widely recognized, and least controversial name in the digital asset space.
But what happens after that first discussion often reveals a wall of worry – the belief that everything beyond Bitcoin is untested, overly risky, or simply speculative noise. Yet, much like any emerging asset class, today’s “untested” technologies often become tomorrow’s infrastructure. Ethereum is already showing signs of making that leap. Bitcoin once had to climb this wall; today, that same climbing gear has been handed to Ethereum.
We feel strongly enough about crypto’s second-largest asset that we urge advisors to start learning about it now – because waiting risks being left behind. Ignoring Ethereum means overlooking the network quietly powering decentralized finance, NFTs, real-world assets, and smart contracts – innovations we believe will define the next era of digital assets. In our view, failing to take it seriously isn’t just a missed opportunity; it’s turning your back on what’s next.
Before we share our own endorsement, it’s worth listening to the institutions already speaking loudly:
JPMorgan: “We think ether is emerging as a direct way to gain exposure to the expected meteoric growth in stablecoins as the Ethereum network hosts most of these stablecoin assets, directly as the L1 or indirectly through some L2s.”
Standard Chartered: “We raise our price forecasts, as the backdrop for ETH has improved dramatically in recent months,” wrote Geoff Kendrick, Global Head of Digital Assets Research.
Fundstrat: “ETH is arguably the biggest macro trade for the next 10 to 15 years as AI creates a token economy on the blockchain and as Wall Street financializes on the blockchain,” said Thomas Lee, Chief Information Officer.
BlackRock: “There are three [use cases] that we focus on that have a lot of resonance with our client base: it’s a bet to some extent on tokenization, on stablecoin adoption, and on decentralized financing,” said Robert Mitchnick.
Fidelity: “Ether offers long-term differentiation from bitcoin and other digital assets as the backbone of future technological innovation due to its dominant network effects. Ether provides short-term differentiation … as a leading stablecoin payment network.”
Deutsche Bank: “Staying at the forefront of applicable innovation is critical to future-proofing our industry. Embracing tokenization and staying at the forefront of web3 adoption is key to future-proofing the banking sector,” said Boon-Hiong Chan, Asia Pacific Head of Securities & Technology Advocacy.
Unlike these firms, we don’t have a financial stake in Ethereum or a product to promote. That allows us to say plainly what others only imply.
We’ve long argued that stablecoins are the most important innovation in the digital asset space – and they wouldn’t be possible without Ethereum providing the rails for them to exist securely and efficiently. Annual stablecoin transfer volume hit $27.6 trillion in 2024, surpassing Visa and Mastercard’s combined card-based payments by 7.7%.
The success of stablecoins has paved the way for institutional money market funds. BlackRock’s BUIDL, WisdomTree’s WTGXX, Ondo’s OUSG, and Franklin Templeton’s BENJI are leading the pack, with $5.28 billion of the $7.31 billion total already on Ethereum. These funds offer collateral quality upgrades and yield generation – a combination gaining traction at speed.
The Ethereum conversation now also includes ETFs – and the numbers speak for themselves. Ethereum ETFs have drawn $12.73 billion in cumulative net inflows and hold $29.22 billion in assets. For context, they attracted $4.2 billion between July 2024 and June 2025, followed by $4.4 billion in July alone. That’s not just a comeback – that’s a resurgence.
Public companies are taking notice too, stockpiling ETH as a treasury asset. BitMine (backed by Peter Thiel), SharpLink Gaming (led by Ethereum co-founder Joseph Lubin), and World Liberty Financial (a Trump-family venture) collectively hold billions. Across all buyers, ETH as a treasury asset totals just over $16 billion – less than the $20 billion war chest BitMine alone has announced. In what other market are the signals this strong, with retail still able to front-run institutions?
Ethereum isn’t a secondary play anymore – it’s a once-in-a-generation asset that has just begun its run.
So, the next time you’re discussing digital assets with a client, we encourage you to extend the conversation beyond Bitcoin. Frame Ethereum in terms your clients already understand, and the “wall of worry” shrinks dramatically. Ignoring Ethereum now isn’t caution – it’s omission. The most influential firms in finance already see it: Ethereum is no longer just the runner-up – it’s a pillar of the digital asset ecosystem.
The Fed Sunsets Specialized Crypto Supervision
On Friday, the Federal Reserve Board announced that it will sunset its Novel Activities Supervision Program, a framework established in 2023 to enhance oversight of banks engaging with emerging technologies such as cryptocurrency, distributed ledger technology (DLT), and complex fintech partnerships. As the Fed explained, “Since the Board started its program to supervise certain crypto and fintech activities in banks, the Board has strengthened its understanding of those activities, related risks, and bank risk management practices. As a result, the Board is integrating that knowledge and the supervision of those activities back into the standard supervisory process and is rescinding its 2023 supervisory letter creating the program.”
Our main priority in this development is highlighting that the Fed has “strengthened its understanding” of crypto and no longer feels the need to hover over the space - a practice that had slowed innovation, licensing, and adoption of emerging financial technologies. The program initially drew heavy criticism for creating uncertainty and adding compliance burdens for banks exploring crypto and fintech activities. By folding oversight back into standard supervisory processes, the Fed is signaling greater confidence that traditional supervision can manage risks effectively while allowing innovation to flourish, easing regulatory friction for institutions and their clients.
Scott Bessent Takes the Helm at IRS – Crypto Community Watching Closely
Another notable shift has occurred in the crypto–political–regulatory landscape: Scott Bessent is stepping in to temporarily replace Billy Long, who was sworn in as IRS Commissioner less than two months ago. While Bessent’s role is only temporary, his pro-crypto reputation could signal a more favorable approach to crypto taxation. It’s unlikely the agency will make major policy changes under an interim head, but even a short tenure with a crypto-friendly leader offers a potential positive development for the industry.
As for other notable news involving Scott Bessent, he recently clarified his position on the U.S. exploring ways to acquire Bitcoin, after confusion earlier this past week. He stated, “Bitcoin that has been finally forfeited to the federal government will form the foundation of the Strategic Bitcoin Reserve that President Trump established in his March Executive Order. In addition, the Treasury is committed to exploring budget-neutral pathways to acquire more Bitcoin, expand the reserve, and fulfill the President’s promise to make the United States the ‘Bitcoin superpower of the world.’”
Crypto Yield: Why It Exists – And Why It Matters
BlackRock’s spot Ethereum ETF (ticker: ETHA) has been a runaway success, pulling in over $12 billion in cumulative net inflows since launch – a staggering figure that cements institutional appetite for ETH exposure. Now, BlackRock is doubling down, filing to amend ETHA so it can include staking, allowing the fund to earn yield on its Ethereum holdings.
In crypto, “yield” refers to the rewards earned by helping secure and operate a blockchain network. For Ethereum, this comes through staking, where participants lock up their ETH to validate transactions and maintain network integrity. In return, they receive newly issued ETH and transaction fees – conceptually similar to earning interest, but tied to network activity rather than a central bank rate.
This yield exists because Ethereum is a decentralized system that relies on economic incentives to function. Just as a bank pays depositors interest to lend out capital, Ethereum pays stakers to contribute security and uptime. The annual percentage yield (APY) typically hovers around 2%, fluctuating based on total ETH staked and network usage.
For RIAs, this dynamic creates a dual-return profile: potential price appreciation plus a predictable income stream. It also introduces unique considerations – liquidity lock-up periods, validator performance, and custodial solutions – that differ from traditional income products. Understanding these mechanics is essential to guiding clients within a compliant, risk-adjusted framework.
Disclaimer: The information provided by The Crypto Advisor is for educational and informational purposes only and does not constitute financial, investment, or legal advice. The Crypto Advisor is not a registered investment advisor, broker-dealer, or financial planner. Nothing in this email should be interpreted as a recommendation to buy, sell, or hold any financial instrument or investment. Always consult with a licensed financial professional before making any investment decisions.